The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

a$.$ Purchased $$138,600$ of materials.

b$.$ Used $$93,540$ of direct materials in production.

c$.$ Incurred $$182,560$ of direct labor wages.

d$.$ Incurred $$213,040$ of factory overhead.

e$.$ Transferred $$426,220$ of work in process to finished goods.

f$.$ Sold goods for $$660,000.$

g$.$ Sold goods with a cost of $$367,500.$

h$.$ Incurred $$86,200$ of selling expense.

i$.$ Incurred $$70,250$ of administrative expense.

Required:

Using the information given, complete the following:

a$.$ Prepare the January income statement for Sorensen Manufacturing Company.

The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

a$.$ Purchased $$138,600$ of materials.

b$.$ Used $$93,540$ of direct materials in production.

c$.$ Incurred $$182,560$ of direct labor wages.

d$.$ Incurred $$213,040$ of factory overhead.

e$.$ Transferred $$426,220$ of work in process to finished goods.

f$.$ Sold goods for $$660,000.$

g$.$ Sold goods with a cost of $$367,500.$

h$.$ Incurred $$86,200$ of selling expense.

i$.$ Incurred $$70,250$ of administrative expense.

Required:

Using the information given, complete the following:

a$.$ Prepare the January income statement for Sorensen Manufacturing Company.

b$.$ Determine the inventory balances at the end of the first month of operations.